ONDO rallies 7% as exchange supply declines and social dominance rises
- ONDO added 7% to its value on Saturday amidst rising mentions on social media from market participants.
- The DeFi token’s exchange supply hit its lowest level in 2024.
- On Friday, a whale withdrew nearly $6 million in Ether to buy ONDO, ahead of the rally.
ONDO, a DeFi token added 7% to its value on Saturday as the asset featured in higher number of discussions on social media platforms. Crypto intelligence tracker Santiment tracks the metric social dominance and helps identify the assets that are gaining traction among traders.
A large wallet investor withdrew Ethereum and bought ONDO on Friday, ahead of the DeFi token’s price gains.
ONDO price rallies amidst dwindling exchange supply
ONDO gains relevance among traders as more participants seek risk-isolated, fixed yield loans backed by yield-generating cryptocurrencies. The social dominance of the DeFi token surged to its 2024 peak on Saturday, as seen on crypto intelligence tracker Santiment.
 [12.11.07, 18 May, 2024]-638516116173895560.png)
ONDO social dominance
Another key on-chain metric, supply on exchanges shows that ONDO supply is at its lowest level in 2024. Exchange supply helps identify the selling pressure on the asset, higher the exchange supply, higher the likelihood of tokens being sold for profits. This negatively influences prices.
ONDO supply on exchanges has consistently declined in 2024.
 [12.13.54, 18 May, 2024]-638516116490031210.png)
ONDO supply on exchanges
Data from crypto intelligence tracker Lookonchain shows that a whale withdrew nearly $6 million in Ether from an exchange and used it to buy ONDO, on Friday. The whale was likely preparing for the ONDO price rally.
Someone created a new wallet 27 hours ago and withdrew 1,870.68 $ETH($5.7M) from #Gemini.
— Lookonchain (@lookonchain) May 17, 2024
Then he spent the 1,870 $ETH($5.7M) to buy 6M $ONDO at an average price of $0.95 in the past 27 hours.
Does this guy know something that we don't?https://t.co/3ZQ6s6SnVM pic.twitter.com/G1udIF8Mhw
At the time of writing, ONDO is trading at $1.016, as seen on Binance, up 7% on the day.
(This story was corrected on May 20 at 05:00 GMT to say, in the headline, that social dominance rises instead of social rises.)
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
